If someone wants to transfer their house to me without me giving them any cash is legal, how does the transaction work? I plan to get the house and catch up the payments and keep it...if I can't catch up and keep I may need to file BK. To help person safe. Great piece of property. Any hones sincere suggestions?
2006-12-28 05:44:50 · 13 answers · asked by Million C 2 in Business & Finance ➔ Renting & Real Estate
If you write up a contact specifying payment amounts and payoff time, it might be possible. Talk to a lawyer.
2006-12-28 05:47:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sure, it is simply a gift instead of a sale, but the paperwork is essentially the same. Now, you mentioned payments, which means a mortgage somewhere. That could present a problem. Some home loans are "assumable" (and some are not) which means the loan can be assumed, taken over, by you, BUT and this is a big BUT, you have to qualify for the loan as any other buyer would have to. Once the loan is in your name, and you fail to make the payments, the mortgage lender will likely forclose, evict you and force a sale to recover their money. Bankruptcy (I'm guessing that's what you mean by the "BK," am I correct?) does not relieve you of this kind of debt, but rather restructures the debt. Remember, you do not "own" the house, the bank does, until it is completely paid in full, in the same manner as the bank or finance company owns your car. You are the registered owner, not the legal owner until the loan is paid in full. The legal owner can take back the assets (house, car, whatever assets were used to secure hte loan) if you fail to pay. Get a lawyer involved in this so you are fully aware of the legal ramifications of forclosure and bankruptcy. There is no such thing as a free lunch.
2006-12-28 06:18:35 · answer #2 · answered by rowlfe 7 · 1⤊ 0⤋
speak to a lawyer. if the house is financed (i.e. subject to a mortgage) there is probably a "due on sale" clause which would require the lender to be repaid if title is transferred, even gratuitously. if the property you are talking about is financed all that transferring title would do is accelerate the loan if the lender were to call a default.
that said, in most states title to real property is transferred by a deed. no cash consideration is required.
before you get into a heap of trouble talk to a lawyer. paying for a little legal advice at the front end will probably save you from paying big bucks to a lawyer on the back end if this all goes sour.
2006-12-28 05:56:36 · answer #3 · answered by GMoney 4 · 1⤊ 0⤋
Depending on the facts there could be other options for you.
You state you want to help the person out. Perhaps you could form an LLC and then divide the percentage of ownership up accordingly. This may or may not be the best plan for you.
2006-12-28 06:06:15 · answer #4 · answered by Robert 2 · 0⤊ 1⤋
yes you can
you need to be put on the deed, and have them taken off. Then you can refi it. It is your house when you sign the deed. But if you do not catch up the payment the bank can take the home.
2006-12-28 05:52:28 · answer #5 · answered by s_uperdave 3 · 0⤊ 0⤋
The only requirement for ownership that I know of is having the title in your name. Once the title is in your name, it's yours. An exchange of money is not a requirement.
2006-12-28 05:48:32 · answer #6 · answered by Mickey Mouse Spears 7 · 0⤊ 0⤋
While ownership may be transferred without cash, the previous owner may not transfer the loan to you, without the bank's permission. Most likely the bank will not give their permission, so you have nothing to worry about.
2006-12-28 05:49:08 · answer #7 · answered by Anonymous · 0⤊ 1⤋
I am a real estate secretary, and I look at deeds all the time where one person will sell another person a house or piece of land for $1.00.
2006-12-28 05:48:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes, it is possible. The banks and tax office won't be too happy, but to keep from getting any grief, get a real estate lawyer to tie up any loose ends.
2006-12-28 05:48:21 · answer #9 · answered by Ambassador Z 4 · 0⤊ 0⤋
you can legally xfer a house with a sales price of $1. But in your case they cannot xfer the house unless it is free and clear of all liens - you can talk to their mortgage company and see if you can take over payments. hope this helps
2006-12-28 05:49:43 · answer #10 · answered by Anonymous · 0⤊ 0⤋